File this under Noteworthy Anecdotes…
Bill Fleckenstein, skeptical hedge fund manager, noted short-seller and the author of Greenspan’s Bubbles is getting the band back together. According to Herb Greenberg at TheStreet.com. Flecksein is relaunching his short fund:
“For four years and counting, there was no reason to think about shorting,” he told me. “I survived from 2000 to 2009, even when the market was going up, because I made what the Fed was doing a key variable.”
When that variable changed, he figured “it would be impossible to make money on the short side. I knew the Fed and the other central bankers would print a tremendous amount of money and it would be impossible to be short until the time the bond market takes away the printing presses — I mean, forces them to stop.”
Which, he believes, is where we are right now.
I compartmentalize stuff like this along with all the stories of value managers returning cash to shareholders for lack of ideas, private equity firms bolting for the exits and the fact that four of the top five global hedge funds by AUM are now no longer accepting new money.